Cambodia is known to be one of the fastest-growing economies in Asia with a growth that averages about 7.6% over the last decade. While Agriculture is the most dominant economic sector marking a steady revenue to the Cambodian GDP, the economy shows strong growth in sectors that include textiles, construction, tourism, and garments. This has led to an increase in foreign investment, international trade, and an ideal country for business expansion.
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The monthly minimum wage is 730,002 KHR for regular employees. For employees who are on probation, the minimum wage is 709,947 KHR.
Laborers are paid at least every 16 days. Regular employee’s wages are paid monthly.
13th month salary
Employee stock option
There are no provisions for employee stock options in Cambodia. The employers may provide employee stock options in form of additional incentives and must be provided in writing in the form of an employment contract.
Standard working hour is 48 hours per week.
Overtime is paid at the rate of 150% of the regular pay. For overtime between 10pm and 5am, the pay rate is 200%.
The public holidays can be found here.
Employees are entitled to 18 days of paid leave per year and are accrued at a rate of 1.5 days per month.
Employees are entitled to up to 6 months of sick leave per year as long as they are able to provide a medical certificate.
Sick Pay Rate
Maternity leave is 90 days and the woman is entitled to 50% of their pay.
Not mandatory, and falls under special leave.
Employees are entitled to up to 7 days per event for matters that affect an immediate family member.
If both the employer and employee agree, a fixed-term contract can be terminated before the end date by signing an agreement in front of a labor inspector. If one of the parties does not agree, the employment contract cannot be terminated unless for reasons of gross misconduct or force majeure.
Written notice must be given. If the employer initiates the dismissal, then a reason must be provided. The employer must also notify the Ministry of Labor.
Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.
Fixed Term Contracts
If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.
It is mandatory for employers to provide social health insurance (SHI) for formally employed workers. The system would include employment injury benefits and old-age and survivors' pensions. The monthly contributions amount to a minimum of US$ 1.60 by the employee to avail the benefits of social security.
The contribution would ensure it covers the healthcare expenses and other costs relating to hospitalization. The scope of the healthcare provided by the employer covers the employer as well as the immediate dependants.
Further details about insurance in Cambodia can be found here.
The standard VAT rate in Cambodia is 10%